ID Logistics becomes no 2 in chilled distribution

ID Logistics commits
to South Africa and becomes the number 2 provider in chilled distribution
market

ID
Logistics, an international leader in the contract logistics market,
recently announced its commitment to South Africa and outlined plans to expand
its local operations.

Eric
Hémar, CEO and Chairman of ID Logistics, who was on a business trip in
South Africa commented: “Our activities in South Africa have experienced
solid growth in 2016. We opened our network in 2014 with one customer, Danone.
Now we have become the second largest provider in the chilled / perishables’
market, with a multi-client approach and the confidence of big branded names in
South Africa. Our team has strengthened its infrastructure, consolidated and
expanded its client portfolio and offering. We are excited to continue to
welcome some more world renowned multi-national brands and some more South
African brands into the fold during 2017.”

Etienne
Juillard, MD of ID Logistics SA, expanded, “Our challenge is now to
continue to build on the perishable platform, extend our warehouse facilities
and convince clients in other sectors - such as retail and FMCG, where
centralisation and insourcing is prevalent - to outsource these services and
enjoy the benefits of faster turnaround times, cost savings, global quality
standards and innovation. It also opens up new opportunities, such as
collaborations between suppliers and other providers. At the same time, we are
developing and growing our services in other vertical markets, namely
e-commerce, cosmetics and fashion, leveraging our experience from other
countries. What is also important is to upsell to our existing client portfolio
and offer more value added services.”

Juillard
added that in line with the group’s commitment, the South African subsidiary is
investing in new technologies and innovations with the objective of increasing
productivity and improving experiences for clients. These include route
optimizing software, in-truck live navigation and delivery status,
digitalization, narrow aisle and flexi-reach trucks. Hand-in hand with these
innovations is the upskilling of personnel to handle the new technologies.

According
to Juillard, the group’s global standards have had a positive impact on
upping the bar in terms of skills in South Africa. “We deploy overseas’
resources to share and support these processes. What we really hope to achieve
is a good balance of local and international skills, which ultimately benefits
our clients and the industry at large,” he added.

The
establishment of ID Logistics in South Africa with an anchor international
customer was the springboard for developing a comprehensive multi-customer,
multi-channel and multi-category operation and as such, the group’s engagement
and investment in South Africa was for the long term.

He
also emphasized the importance of enhancing the company’s B-BBEE scores to
achieve a Level 4 rating in the next few years, pending promulgation of the
latest legislation scoring system.

Highlights
of ID Logistics SA’s recent financial year include extending the Danone
contract until the end of 2022; on-boarding 11 new clients in the FMCG
perishable sector including Henties, Mayo, BRM, Sir Fruit, Crisp, Okin
Foods, Deneys Swiss Diary, and Woody’s; completing 75 cost-saving
initiatives to enhance their network; and achieving global quality standard
certification of all 5 local sites.

ID
Logistics’ CEO, Eric Hémar, shared the group’s 2016 financial
results, which were recently announced. “Through organic growth and
acquisitions, ID Logistics achieved revenues in excess of €1 billion in
2016 and has solid growth in store for 2017. The group has managed in
particular to diversify its client portfolio by stepping up its presence in
e-commerce, penetrating new business sectors such as healthcare, fashion and
automotive, and attracting new clients that are world market leaders in their
field. These investments made in 2016 will drive our growth over the next few
years in order to achieve our aim of becoming a leading name in contract
logistics in Europe and Africa,” he commented.

ID
Logistics has more than 275 sites across 16 countries, representing close to 5
million square meters of warehousing facilities in Europe, Latin America, Asia
and Africa, and 18,500 employees.

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